Neuland doubles Q4 operating profit on strong API sales
In fiscal 2010 Neuland posted weak results, including a small after-tax loss, but has returned to profitability and growth. Fourth quarter net revenues were up 30 per cent year-on-year, building on strong growth throughout 2011, as a result of solid performance across the business.
“We achieved increases in revenues across all of our lines of business, with especially strong gains in active pharmaceutical ingredients (API) sales”, said DR Rao, managing director of India-based Neuland.
The contract research and manufacturing and peptides units also posted strong full year sales, said Neuland. Total revenue in fiscal 2011 was $88.8m (€63.4m), up 41 per cent year-on-year.
Neuland attributed improved financial performance to “strategic and operational initiatives”. Sucheth Davuluri, CEO of Neuland, said: “The across-the-board gains we achieved…show that we are beginning to reap the benefits of the investments we made over the past few years.”
Investing in these initiatives increased debt at Neuland but the company is confident levels will fall as it continues to grow revenue and profit in fiscal 2012. Neuland also expects to improve margins in the coming year.
On Friday, the day the results were released, shares in Neuland closed up 1.6 per cent at Rs 127 on the Bombay Stock Exchange. At the time of publication the share price had slipped by 2.96 per cent.
Manufacturing at ShangPharma
China-based ShangPharma grew first quarter net revenues by 25.6 per cent year-on-year and continued to work towards adding capabilities. Ongoing expansion efforts are adding capacity to produce intermediates and APIs for use in preclinical testing and clinical trials.
"Progress on our new state-of-the art manufacturing facilities in Fengxian, Shanghai remained on track. We successfully started the first phase of our new cGMP multi-purpose facility and continued construction on our laboratory service building", said Xin Hui, CEO of ShangPharma.
